The U.S. has reached a deal to lift steel & aluminum tariffs imported from Canada and Mexico
The U.S. has reached a deal to lift tariffs imposed on industrial metals imported from Canada and Mexico. According to The Washington Post, the lift calls for both countries to adopt new monitoring and enforcement measures to prevent subsidized Chinese steel from being shipped to the U.S. The U.S. will lift its tariffs in 48 hours in return.
President Donald J. Trump said to the National Association of Realtors that the deal should help lawmakers to ratify the new United States-Canada-Mexico Agreement (USMCA).
“That deal is going to be a fantastic deal for our country. Hopefully Congress will pass the USMCA quickly,” Trump said, according to the Post.
According to the Water & Wastewater Equipment Manufacturers Assn. (WWEMA), tariffs for steel and aluminum are currently 25% and 10%. This agreement aims to eliminate the practice of transshipment. In March 2018, President Trump imposed tariffs on steel and aluminum, citing national security considerations. According to WWEMA, the deal will allow the U.S. to retain the right to re-impose tariffs if not enough is done to prevent unauthorized imports.
“He thinks the government needs to be much more active in making decisions about cross-border trade flows, which is a departure from his predecessors,” said John Veroneau, a deputy U.S. trade representative under President George W. Bush, to the Post.
Sen. Chuck Grassley, chairman of the Senate Finance Committee, said “he would not advance a deal unless the President dropped steel and aluminum tariffs on Canada and Mexico,” according to WWEMA. Some see this as an important step in the passage of the USMCA, according to WWEMA.